Bonzo's boards makes reasonably high-end skateboards which sell for $250 for each. The production process is fairly simple and involves assembling components purchased from various suppliers. Since each skateboard only takes one hour to assembling components purchased from various suppliers. Since each skateboard only takes one hour to assemble, there is essentially no work-in-process inventory.

Bonzo's boards has the capacity to make 2000 skateboards per year.

Costs for the skateboard components are:

Deck $40.00

Truck $40.00

Wheels 45.00

Bearings 20.00

Bolts,etc 20.00

Hardware package-net 125.00

Total $165.00

Each board should take one hour of Direct labor to assemble. Direct labor wages are $50 per hour.

Other costs on a monthly basis are:

Rent $1,000

Insurance 150

Utilities 100

Miscellaneous 200

Total $1,450

Inventory balances are as follows (Bonzo's uses FIFO inventory cost flow assumption)

Units Dollars

Decks 1/1/2016 305 $12,200 12/31/2016 350
Hardware Package 1/1/2016 265 $33,125 12/31/2016 300

Finished skateboards 1/1/2016 300 $63,000

12/31/2016 400

During 2016 Bonzo's boards expects to sell 1000 skateboards

• What is the budgeted cost of Skateboard manufactured for 2016?
• What is the budgeted cost of Decks purchased for 2016?
• What is the budgeted cost of Hardware Packages purchased for 2016?
• What is budgeted dollar value of ending Finished Skateboard inventory?
• What is budgeted dollar value of ending Hardware inventory?
• How much income does Bonzo's boards expect to make if they sell 1,000 skateboards in 2016?
• How much income does Bonzo's boards expect to make if they sell 800 skateboards in 2016?( production is adjusted appropriately)?
• How much income does Bonzo's boards expect to make if they sell 1,200 skateboards in 2016? (production is adjusted appropriately)?